The Dupont analysis also called the Dupont model is a financial ratio based on the return on equity ratio that is used to analyze a company’s ability to increase its return on equity. In other words, this model breaks down the return on equity ratio to explain how companies can increase their return for investors.

The Dupont analysis looks at three main components of the ROE ratio.

Profit Margin
Total Asset Turnover
Financial Leverage
Based on these...